National Shariah Boards: Global Applications and the Case of Turkey

Year 2014, Volume: 3 Issue: 2, 5 - 16, 01.12.2014

Adem Esen

Abstract

Islamic finance industry is growing very rapidly in Asia, as well
as in Europe. Many countries would like to take advantage of it by
changing their regulatory models. The current Islamic finance regulatory structures differ in various countries: Some jurisdictions are
based on the sole authority of the government, while some of them
are only based on the market, and some prefer a mixed system. In
this study, we analyzed the most important Islamic finance markets
and their Shariah governance systems. Ensuring Islamic financial
operations fully in line with Shariah principles would first bring
trust to the financial system and then augment the volume. Therefore, we compared diverse approaches and showed that establishing
a national Shariah Advisory Board could accelerate the Islamic finance in Turkey. 

Keywords

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References

• Zulkifli Hasan, “Regulatory Framework of Shari’ah Governance System in Malaysia”, Kyoto Bulletin of Islamic Area Studies, 82-115, 2010.
• El Waleed M. Ahmed, “A Unified Voice: The Role of Shariah Advisory Boards in Islamic Finance”, Business Islamica, October 2007.
• M. Fahim Khan and Mario Porzio, “Islamic Banking and Finance in European Union”, 2010.
• BRSA, Association of Participation Banks of Turkey, “Participation Banking and Noninterest Finance Workshop Report”, Kızılcahamam, 21 – 23 December 2013 Information collated from some participation banks.